Banks Lag a Rising Market

Banking stocks were soft Monday as the broader markets rose on promising manufacturing and consumer spending data, suggesting that investors remain nervous about the state of the financial sector as the economy stabilizes.

The markets benefited from a report by the Institute for Supply Management that U.S. manufacturing activity expanded in February for a seventh straight month, though the pace of expansion slowed from a month earlier. Also, the Commerce Department said consumer spending grew 0.5% in January.